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Run a scenario analysis for the above problem using the following scenarios. (Assume the answers from question 1 represent the base scenario) Good (Prob 30%)

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Run a scenario analysis for the above problem using the following scenarios. (Assume the answers from question 1 represent the base scenario)

Good (Prob 30%)

Bad (Prob 30%)

Initial Cost

$450,000

$575,000

Salvage

$60,000

$25,000

Savings

$70,000

$40,000

Sales growth rate

5%

-1%

Required rate of return

9%

14%

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